July 10, 2019 - MDT Pro Tips A.M.

CURRENT POSITIONS:

GOGO Long at $19.93
Total Premium Collected $1.95

ASNA Long at $14.20
Total Premium Collected $.75

DUST Long $4.50
Total Premium Collected $.70

SNAP Long at $14.54
Total Premium Collected - $2.37
Short June 20th - $15.50 call @ $.27

RRC Long at $11.85
Total Premium Collected $.70

RRC Long at $9.20

RIG Long at $8.81
Premium Collected - $1.45

FEYE Long at $17.18
Total Premium Collected $.80

NVDA Long July 19th - $157.50 Call @ $3.40
NVDA Short July 19th - $162.50 Call @ $1.50

.........................................................................................

Yesterday, the S & P 500 managed to seek out a small gain on the day. It closed 3.58 points higher, at 2,979.53.

The range for the day was only 18.46 points as compared with the daily average true range of 24.84.

Tuesday was the fourth consecutive day where the market traded below its average true range. This naturally suggests that we should see an expansion.

Perhaps we will see that expansion today with Fed Chairman Powell testifying at 10:00 EST. Or at 2:00 when the FOMC Minutes are released.

It does seem that all the markets are waiting to hear about interest rates before making market commitments.

I am still biased to the longside based on a couple of facts.

The first is that the close is holding the major 2,968.80 level. Yesterday's low went to 2,963.44 before the market managed to recoup the major level.

The second fact is that the close also held above the weekly support level of 2,973. Just like how the S & P 500 traded under and above the major 2,968.80 level, it traded below the weekly support level, but managed to recoup it at the close.

The final fact is that the daily price bar closed at 87% of the range. This suggests that the odds of violating yesterday's high before the low is almost 90%.

The support from yesterday's daily bar is in the 2,972 area, which is right around the weekly support.

Having presented all the bullish facts, I do want to caution you that both the VIX and the S & P diverged yesterday. They both closed to the upside, which does suggest that something unusual is happening in the market.

Also, the news today could have volatile prospects for the markets.

Pre open the S & P 500 is trading about 6 points lower.

Here are the Key Levels for the Markets:

$VIX:

Major level: 21.88
Minor level: 21.10
Minor level: 19.53
Major level: 18.75
Minor level: 17.97
Minor level: 16.41
Major level: 15.63
Minor level: 14.85 **
Minor level: 13.28
Major level: 12.50 <
Minor level: 11.72

The VIX closed at 14.09 yesterday. The VIX did close above the minor 14.06 level, but it is still below the 14.85 level.

Yesterday's high got to 14.71 before closing under it. So, the 14.85 level continues to offer resistance. And it should until it can close above it.

At this point, I am biased for a move down to 12.50.

But, the VIX will have to break under 14.06 for it to drop to 12.50.

SPX:

Minor level: 3,164.08
Major level: 3,125.00
Minor level: 3,085.95
Minor level: 3,007.85 ***
Major level: 2,968.80 << HIT
Minor level: 2,929.73
Minor level: 2,851.58
Major level: 2,812.50
Minor level: 2,773.45
Minor level: 2,695.35
Major level: 2,656.30

There is a minor support level at 2,978.50 and the S & P 500 closed just above it yesterday.

If the market pulls back, I would expect support at 2,954.10. Just under this level, is support at 2,949.20.

Also, watch the 2,972 level today.

Trend still remain firmly bullish.

QQQ:

Major level: 193.75
Minor level: 192.19
Minor level: 189.06 **
Major level: 187.50 < Hit
Minor level: 185.94 **
Minor level: 182.81
Major level: 181.25
Minor level: 179.69
Minor level: 176.56
Major level: 175.00

The QQQ closed at 190.66. Yesterday closed above 189.06, so if the QQQ can close above 189.06 today, it should move up to 193.75.

189.06 should offer minor support. And minor resistance is at 192.19.

Technical support is at 189. Short term charts remain firmly bullish.

IWM:

Major level: 162.50
Minor level: 160.94
Minor level: 157.81
Major level: 156.25 <
Minor level: 154.69
Minor level: 151.56
Major level: 150.00
Minor level: 148.44
Minor level: 145.31
Major level: 143.75

The IWM closed at 155.40. Yesterday's low came to 154.48, before rallying to close above it.

The low was also 4 cents above the midband, which is 154.40.

The minor support level of 154.69 also held. Look for this level to continue to offer support.

To move higher, the IWM will need two closes above 157.81.

Short term trends remain bullish. So, buying against support is the best strategy.

Technical support is at 153.50.

TLT:

Major level: 134.38
Minor level: 133.60
Minor level: 132.03 **
Major level: 131.25
Minor level: 130.47
Minor level: 128.91
Major level: 128.13
Minor level: 127.74
Minor level: 126.95
Major level: 126.56
Minor level: 126.17
Minor level: 125.39
Major level: 125.00

The TLT closed out at 132.56. It is under the upper band, which is now 134.39. It may retest the upper band again.

132.42 is a minor support level. A break under this level and the TLT could drop to 131.

To move higher, the TLT will need to clear 132.81.

The TLT should be volatile this week with the Fed meeting tomorrow.

GLD:

Major level: 134.48
Minor level: 133.60 **
Minor level: 132.03
Major level: 131.25
Minor level: 130.47
Minor level: 128.91
Major level: 128.13
Minor level: 127.74
Minor level: 126.95
Major level: 126.56
Minor level: 126.17
Minor level: 125.39
Major level: 125.00
Minor level: 124.22
Minor level: 122.66

The GLD closed at 131.75. Watch the upper band, which is now 132.80. A retest is likely.

A break under 131.25 and the GLD could drop to 125.

132.81 is a resistance level and the GLD cannot clear this level, I would expect a pullback.

XLE:

Major level: 65.63
Minor level: 64.85
Minor level: 63.28 **
Major level: 62.50 <
Minor level: 61.72
Minor level: 60.16
Major level: 59.38
Minor level: 58.60
Minor level: 57.03
Major level: 56.25

The XLE closed at 63.23. It will need two closes above 63.28 to move higher.

62.50 should be support. And minor support is at 62.89.

64.06 is a minor resistance level. Technical support level is right at the major 62.50 level.

Short term charts remain bullish.

AAPL:

Major level: 212.50
Minor level: 209.38
Minor level: 203.13 **
Major level: 200.00 <
Minor level: 196.88
Minor level: 190.63
Major level: 187.50
Minor level: 184.38
Minor level: 178.13
Major level: 175.00

Apple closed at 201.24. Apple managed to close above the major 200 level again.

The next level on the upside is 203.13. If the Apple can move above this level, it should head higher. The objective should be to 212.50.

If Apple cannot hold 200, a drop to 196.88 is likely.

Short term charts remain bullish.

WATCH LIST:

Bullish Stocks: NFLX, LMT, ADBE, FLT, MA, COST, APD, MLM, VRSN, MCD, HD, FB, OLED, HON, V, BABA, DIS, MSFT, WYNN

Bearish Stocks: RTN, USNA, SPR, KEX, NUS, DIS, TUP

Be sure to check earnings release dates.